Remember when cryptocurrencies used to be straightforward, revolutionary and weirdly romantic-capitalist? A bunch of cypherpunks were going to topple the monetary system from a subreddit and everything would be all sunshine and rainbows? It doesn’t seem that fun anymore. There’s infighting, hacks, distrust mixed with a pinch of pure greed.
The main thing that happened is that these idealistic cypherpunks met cold capitalism in the form of well funded, hyper-organized cartels that weren’t interested in the culture behind the cryptocurrency movement, but just cold dead profit.
Satoshi Nakamoto had accounted for a lot, but Ukrainian botnets of involuntarily mining computers probably weren’t on his radar when he wrote his manifesto in 2008. Even though cryptocurrencies have lost some of their innocence, there is still a lot to love. Altcoins like Ether, Litecoin, Ripple, Zcash and Monero each have their own special character and strength. And even though the pioneers of the cryptocurrency market still prefer Bitcoin or the classic Ether, everyone with some playing money can find a cryptocoin that’s right for him to invest in.
The mainstreaming of digital money, pioneered by Bitcoin, has made investing in them even more popular. But what most people don’t realize is that when you enter this arena you are up against a Chinese whizzkid with his own server park and a supercomputer whose algorithm’s have made 2.5 million decisions by the time you’ve had your morning coffee.
You will lose that fight. Even when you’ve done your homework and religiously read everything there is to read about Bitcoin: when swimming with sharks, chances are you may get bit.
If you want to trade you may as well arm yourself to the teeth. Some of the risk in trading…